Condo owners looking to sell in downtown San Francisco face a price crash.
Median condo sales prices in Greater Downtown and South of Market are down 16.5% from a year ago. The San Francisco Chronicle reportedciting Compass research.
Since last December, the median condo sales price in the region, which includes Civic Center, SOMA, Mission Bay, Yerba Buena and South Beach, has dropped from $1.475 million to $1.23 million.
The downtown condo market has bore the brunt of San Francisco’s lukewarm post-COVID recovery, with many owners willing to sell at discounts amid tech layoffs and office closures. , the downtown district’s median price drop was twice that of the rest of the city.
The Compass study concludes that the plummeting demand is being driven by “the triple whammy of the economy, demographics and quality of life.”
“We knew the market segment had weakened, but we didn’t realize the extent of the change,” said Patrick Carlyle, chief market analyst at Compass.
“San Francisco has gone from being the hottest office market in the world to almost the weakest.”
The city’s condo market is facing headwinds both locally and nationally. Falling stock markets, rising interest rates, and inflation are affecting real estate markets across the country.
At the same time, office occupancy in downtown San Francisco has plummeted more than in other cities, with reduced foot traffic hurting small businesses and making streets less safe.
The high-rise housing that has sprung up in the South of Market over the past two decades was built to accommodate the hundreds of thousands of workers who flooded the city. However, demand for local housing has waned as more jobs are now being done remotely.
Prices for SoMa’s Lumina, a two-tower luxury complex, have plummeted, according to Socketsite analysis.
A 1,800-square-foot, 3-bedroom, 3-bathroom unit on the 32nd floor of 338 Main Street sold for $3.25 million in May 2016 and traded again in August 2019 for $3.5 million. It went public in September for $3.15 million and sold last month for $2.68 million, down 23.4% from 2019.
The two-bedroom unit listed there is priced at $2.6 million, 21% less than the 2016 price of $3.33 million.
Demand for new luxury condominiums has slowed since the pandemic. only in October 13 out of 146 condominium units Four Seasons Private Residences at 706 Mission Street has been sold.
there is also decrease in demand When the condo hit the market.
Park North Real Estate real estate agent Kevin Birmingham said Compass’ survey reflected what he sees around town. He sold his Twin Peaks condo for $695,000. . He closed at $680,000. The seller expected to get $800,000.
With prices dropping, many potential sellers are considering renting the unit. “The listing has been withdrawn and is still on the rental market,” Mr Birmingham said.
— Dana Bartholomew